Perhaps the zoning officials did look at "the impact on the city as a whole", and decided that a restaurant at this location could have a negative impact on the value of the residences nearby, thus affecting the tax base in the area. Is one new business, which conceivably can located elsewhere, necessarily worth lessening the value of the neighboring properties? A zoning variance shouldn't be given without careful consideration.
The building in question [[as is the case with so many old fire stations) looks like a grand old structure and in today's environment, should find a viable way of being reused.
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